ROYAL GOVERNMENT OF BHUTAN

1. ROYAL GOVERNMENT OF BHUTAN ANTI-CORRUPTION COMMISSION Leadership, Institutions, Systems & Social Responsibility key to Good Governance and Good Governance, key to curbing corruption Presentation to the WORKSHOP “review OF ANTI- CORRUPTION STRATEGY: PARTNERSHIP & OWNERSHIP” 20-21 AUGUST 2007

2. Landlocked Himalayan kingdom, between China & India • Land area, 38,394 sq.km (72% forest cover) • Population (2005) - 552,996 • Predominantly Buddhist & an agrarian society with 79% rural population • Never colonized • Ending self-imposed isolation with start of development plans in early 1960s; steady administrative & political evolution from 1950s to Parliamentary Democracy in 2008 • Per capita GDP (2005) – US$ 1,321 • Life expectancy (2000) – 66 years (47.5 years in 1985) • Literacy rate (2005)– 59% (23% in 1985) • Primary health coverage – 90% (50% in 1985)

3. National Vision: • Harmonious, just, peaceful, prosperous and happy nation

4. Four Pillars of GNH: Gross National Happiness- Development Philosophy of Bhutan • His Majesty the 4th King, Jigme Singye Wangchuk -author. • An attempt to define peoples’ well being in more holistic and psychological term than hard economics. • Attempt to quantify well being and happiness. • Middle path approach in which spiritual and material pursuits are balanced. • Sustainable and equitable socio-economic development • Conservation of environment • Preservation and promotion of culture • Promotion of Good Governance

5. “Although Bhutan had been once effectively brought under the beneficent influence of strict law and justice, it subsequently, on account of general corruption and laxity on the part of those in authority, became slack in all branches. If this should be allowed to continue, there would be no distinction between right and wrong, no justice and without justice human beings cannot have happiness and peace.” Zhabdrung Ngawang Namgyal (17th Century)

6. RGOB’s ANTI-CORRUPTION POLICY • GNH places people at the centre stage. • Democracy vests sovereign power in the people 1950s • Good governance has been the cornerstone of the government’s development policies. • Transparency, accountability, efficiency, effectiveness & professionalism, hall marks of good governance, are the much announced policies of the government; • Anti-corruption measures have been generally addressed through the good governance policies.

7. Chronology of events since 1950s (GG) • 1953 : Establishment of the National Assembly (NA) • 1959 : Thrimshungchenmo passed by the NA • 1961 : Establishment of an Accounts & Audit Committee (16th NA) • 1963 : Establishment of the Royal Advisory Council • 1968 : Establishment of the Cabinet • 1968 : Judiciary separated from the executive with the establishment of High Court • 1969 : Establishment of district courts

8. CONTD… • 1970 : Four Royal Auditors appointed by His Majesty (31st NA session) • 1970 : Establishment of an independent Royal Court of Vigilance • 1970 : Promulgation of Gross National Happiness as Bhutan’s development philosophy • 1981: Establishment of Dzongkhag Yargay Tshogchung (DYT) • 1984 : Royal Advisory Council revitalized for greater effectiveness

9. Contd… • 1985 : Royal Audit Department restructured as an autonomous body & renamed Royal Audit Authority • 1991: Establishment of Geog Yargay Tshogchung (GYT) • 1998: Devolution of executive power to the elected council of Ministers • 1999:Good Governance Initiative (enhancement of efficiency, transparency, & accountability) launched. • 1999: Royal consent to the silver jubilee celebration of HM’s enthronement granted only on condition that the • occasion amongst others enhanced greater public awareness • of ill effects of corruption before it became deep rooted.

10. CONTD… • 2000: Establishment of Department of Legal Affairs (now OAG) • 2000: Establishment of Internal Audit Units in the ministries • 2004: Establishment of Public Accounts Committee of NA • 2004: Bhutan signed UN Convention Against Corruption • 2005: GG+ launched; corruption featured as a discrete national agenda • 2005: Royal Decree issued to establish an ACC • 2006: ACC established • 2006: Audit & ACC Acts passed by 85th NA session • 2006: Establishment of 2 private newspapers

11. RBOB POLICY: 9TH PLAN (CHAPTER 5 ) • Process & rules driven management paradigm with an emphasis on hierarchical decision-making & control will have to give way to a decentralized result oriented system based principles that centre of entrepreneurial dynamism & competition. • Well defined services & better coordination of the range of services through one-stop counter wherever possible will be explored.. make services provision more accountable to customers. • Central importance of building new leadership not only for service organizations but the overall governance will be a priority in the 9th Plan • Public service that is characterized by responsiveness & public accountability • Public accountability will form an integral component of performance management system. • It will be the RGOB’s endeavour to promote governance that is characterized by effective & a high level of trust & confidence from the people.

12. MoF to inventorize all government assets (# 72) MoIC to establish a high level body to coordinate e-governance (# 88) MoWHS (CDB) to work out systems to root out corruption in construction (# 98) Review the compulsory labour contribution (# 112) All agencies to strengthen & organize information base & ensure accuracy of information (# 120) Agencies/RCSC to institute training programs for frontline staff to promote customer relationship (# 134) Agencies/RCSC to publicize values & ethics (# 136) HIGHLIGHTS OF GG+ (SOME ANTICORRUPTION MEASURES)

13. CONTD… • Agencies & MoF to strengthen IAUs and identify as the focal person in creating an anti-corruption coalition (# 193) • Agencies to develop specific action plan to address the risks of corrupt practices including proper M&E system (# 195 & 196) • Agencies/RCSC to institute systems of taking prompt and severe action on corrupt practice (# 198) • Leaders should be role models, should ensure that their actions more than comply with the organization and societal code of conduct & ethics and strive to be accountable & objective, examining their decisions for consistency, compliance, etc. (# 202 & 203) • Agencies to develop ways to ensure accessibility to laws, forms and information (# 215) • A government wide procurement system should be developed and implemented throughout government agencies (# 216)

14. Anti-Corruption Commission-Established on 4th January 2006 through a Royal Decree & as per the draft Constitution “With the rapid pace of economic development in our country there have been changes in the thinking of the people with the influence of self-interest leading to corrupt practices taking place in both the government and the private sector. If appropriate steps are not taken now to stop this trend, it will lead to very serious problems in the future, for both the government and the people, in our country with a very small population. In this regard, it is the responsibility of every Bhutanese to act against corruption in our country. At a time when we are establishing parliamentary democracy in the country, it is very important to curb and root out corruption from the very beginning. Therefore, it is imperative to establish the Office of the Anti-Corruption Commission before the adoption of the Constitution and build a strong foundation for the Commission to effectively carry out its functions and responsibilities. The Chairperson of the Anti-Corruption Commission is authorized to carry out investigations on any person in Bhutan, regardless of status or position, in the course of discharging her important responsibilities.” ….. Druk Gyalpo the 4th King Jigme Singye Wangchuk on 31st December, 2005

15. Vision Core Values Anti-Corruption Commission To be the conscience of the nation. To build an in-corruptible society that upholds the values of Right View, Right Intention, Right Speech,Right Action, Right Livelihood, Right Effort, Right Mindfulness and Right Reflection. Mission Leadership, teamwork,public trust & confidence, integrity, loyalty, humility, fearlessness, commitment, impartiality, professionalism, expediency, creativity, tenacity of purpose and result-driven.

16. ANTI-CORRUPTION COMMISSION Structure

17. Independence: • Legal Independence: By law ACC is an independent organization established with the provisions of the constitution (Chapter 2, Clause 3 of AC ACT 2006) • Financial Independence: ACC’s budget is approved by the parliament as a part of annual national budget (Chapter 2 , Clause 8 of AC ACT 2006) • Operational Independence: ACC enjoys organizational and functional independence including programming, investigation and reporting (Chapter 2 , Clause 5 of AC ACT 2006) • Administrative independence: ACC has authority to determine and administer its organizational structure, budgetary and personnel requirement (Chapter 2 , Clause 6 of AC ACT 2006) Status of ACC:

18. Stringent code of conduct and ethics governs the performance of the commission and its staff. • Violation of the code by the Chair person will be ground for impeachment • AC Act requires the Commission to submit an annual report to the His Majesty, Prime Minister and the parliament. • Assets declaration • Annual Auditing by the RAA. • Accountability:

19. Core Code of Conduct • Maintain the highest standard of integrity, honesty, selflessness and fairness. • Act in accordance with law. • Conduct duties without fear or favor, prejudice or ill will, avoiding all forms of discriminations. • Display professional excellence. • Maintain highest degree of confidentiality. • Exercise courtesy and restraint in words and action. • Declare all conflicts of interests. • Take no undue advantage of one’s authority and position. • Be accountable for one’s actions and instructions. • Receive no gift or favor.

20. ORGANIZATIONAL CULTURE • ACC has to be a strong, credible and a dynamic institution that enjoys public trust and confidence. • ACC’s first priority has been to establish a strong institution with a cadre of high caliber professionals with high standards of integrity, right organizational ethos and dynamic systems of operation through promotion of spirit of mutual co-operation and confidence between agencies and the ACC; public and the ACC. • ACC draws its ethos from the spirit of the Royal Decree.

21. charity trust civil society public entity foundation corporation NGOs person ACC’S ACT - Anti-Corruption Act passed by National Assembly in July 2006 Act Application

22. ANTI-CORRUPTION POLICYGUIDELINES • Anti-corruption policy must address the needs and expectations of all strata of society, particularly the helpless poor and the socially disadvantaged, who are the ultimate victims of corruption. • It calls for a multi-frontal action involving citizens, public and private agencies, media, NGOs and civil societies. Good governance, service delivery and anti-corruption measures are mutually reinforcing and engage everyone in a partnership role • The policy also has to pay special attention to prosecution and the judiciary. • Investigation no matter, how effective, is pointless if it does not result in effective prosecution and adjudication. A strong and credible judiciary makes a strong ACC.

23. National Anti-Corruption Strategy-National anticorruption strategy & an action plan provide a platform for concerted anti-corruption efforts an optimization of limited resources.

24. NATIONAL ANTI-CORRUPTION STRATEGY Strategy 1: Public education & Advocacy • Public education and advocacy is a continuous process. r “Fighting corruption is a SHAREDresponsibility.”

25. ANTI-CORRUPTION STRATEGY (CONTD…) Strategy 1: Public education & Advocacy (Contd…) “Laws and rules cannot govern every aspects of persons life. Therefore, the role of the individual is far more important in deciding whether Bhutan will be a country that embraces the values of integrity and honesty or one that accepts corruption and dishonesty. It is not enough to be honest –there is no subsitute to living by a simple rule, I will not be corrupt and I will not tolerate corruption in others.” - 5th king

26. Contd… • An informed and vigilant citizenry and public servants. • Curbing corruption is about changing attitude, changing negative habits and behavior – the most sustainable anti-corruption strategy. • A public culture that does not accept corruption as a way of life has to be cultivated through sensitization and public awareness on various forms of corruption, grave consequences of inaction and importantly citizens’ role in fighting corruption. • Medium - Media, youth, local leaders, monastic body, etc.

27. STRATEGY (CONTD…) Strategy 2: Prevention A. Systems Review : • Reducing red tape & over regulation, improving service standards & public grievance re-dressals, local governance, conflicts of interests, application of ICT, coordination, etc. B. Asset Declaration: • Disclosure of income, assets and liabilities by public servants. • In-house capacity development of the Asset Administrator in the agencies and the OACC. C. Corruption Perception Survey

28. ANTI-CORRUPTION STRATEGY (CONTD…) • Strategy 3: Partnership:

29. ANTI-CORRUPTION STRATEGY (CONTD…) • Buidling a network of anti-corruption champions • International partners- CBI, ADB-OECD, CPIB, MACA, UNDP, DANIDA, SDC & Dutch. • KICAC. Strategy 4: Capacity Development of ACC & Allies: • Training, seminar, workshop, study tours, etc both In-country and • Ex-country

30. ANTI-CORRUPTION STRATEGY (CONTD…) Strategy 5: Investigation: • Enforce AC Act stringently through timely and result-oriented investigation; • Investigation to target: • corruption prone areas, • significant few rather than trivial many, high impact approach focusing on large-scale entrenched corruption (however, this may be tempered by the nature of complaints); & • service delivery that adversely affects the common people due to corruption;

31. COMPLAINTS Guiding Principles Besides the Code of Conduct, the following broad principles govern the OACC in managing the complaints: • Value every complaint; • Members of the Complaints Management Committee (CMC), investigation team and complaint registrar should announce any conflict of interest before registration/review of complaints and enquiry or investigation of a case; • Respond promptly to walk-in complainants; • Conduct discreet enquiries of all pursuable complaints before investigation; • No time limitation on complaints that bear national and public interest; • Uniform application of law; • Speedy action; • Highlight any systemic flaws during review of complaints and investigation; and • Conform to the operational manual. • (any complaint against anybody in ACC, immediate action; setting the example)

32. Orally Phone-in ACC Forum & email Post (mail) Walk-In Diagrammatic procedure for lodging a complaint

33. COMPLAINTS MANAGEMENT • Complaints related to corruption registered by a Complaint Registrar • Complaints management committee reviews complaints every week • Commission apprised on a monthly basis (recent amendment). • Complaints are reviewed based on pursuability factor. • Some complaints are consolidated and shared with agencies • Some are pursued through the RAA • Importantly, the reviews also highlight system weaknesses, which the office shares with agencies and follows up on important issues

34. CHALLENGES

35. Challenges (Contd…) • Nature of the work itself; • Changing the culture of tolerance, attitude & behavior; • Operating in an environment of entrenched territorialism; • Professional development & to perform against the backdrop of expectations • Cutting through social & power safety nets & small society syndrome • Bringing on board all citizens

36. Challenges (Contd…) • ACC as an infant and a new institution recognizes the potential risk of its well-intentioned efforts of cooperation being misperceived as interference and undermining authority. • ACC being blamed for the inherent inefficiency and attitude of public servants. • Potential risk of complainants abusing it for his/her vested or malicious intent or transferring the legal burden to the OACC with convenient tones of corruption. • To sustain & to do better with regard to Bhutan’s Rank (32nd ) in the TI’s Corruption Perception Index ACC can only be as effective as the government & the public want it to be.

37. OPPORTUNITIES • 5th Druk Gyalpo’s strong drive for excellence, meritocracy and honesty provides the national platform for concerted action. • Bhutan is a small Buddhist country with correspondingly small bureaucracy and private sector. • Corruption level still manageable. • Great reforms underway. These offer great opportunities to all of us to make a difference in our own small and simple ways.

38. THE TEST IS IN THE SINCERITY OF PURPOSE & ACTION Our Kings have set the tone of good governance. Our leaders must lead by example. They have to ‘walk the talk,’ otherwise, they lose the moral authority to lead. “You will not say that you love your country & people; you will prove it in action & in your deeds & above all, you will not say that Bhutan is a great country because we have the philosophy of GNH but you will show how it is put to use”… 5th King

39. National prosperity hinges on quality of governance & governance on quality leadership!!! “ Lead by Example”

40. WHAT CAN I/WE DO? ARE WE SERIOUS ABOUT FIGHTING CORRUPTION ? CAN I MAKE A DIFFFERENC? Reflection WHAT HAVE I/WE DONE? WHAT CAN WE DO TOGETHER? IS ACC MAKING NOISE ABOUT NOTHING?

41. KADINCHE & TASHI – DE – LEK